Page 39 - DEBK-XI(2020)

8.8 Double Entry Book Keeping — CBSE XI

Solution: JOURNAL

Date Particulars L.F. Dr. (`) Cr. (`)
(i) Car A/c ...Dr. 10,000
To Cash A/c 10,000
(Being a car purchased for business use)
(ii ) Cash A/c ...Dr. 5,000
To Bad Debts Recovered A/c 5,000
(Being cash received against bad debts)
(iii) (a) Amrit ...Dr. 20,000
To Sales A/c 20,000
(Being the goods sold at profit of 20% on sale price) (WN 1)
(b) Cash A/c ...Dr. 18,000
Discount Allowed A/c ...Dr. 2,000
To Amrit 20,000
(Being cash received and allowed 10% discount)
(iv) Loss by Embezzlement A/c ...Dr. 2,000
To Cash A/c 2,000
(Being cash embezzled by an employee)
(v) (a) D.K. Suppliers ...Dr. 51,000
Loss on Sale of Machine A/c ...Dr. 34,000
To Machinery A/c 85,000
(Being the loss on sale of machine recorded)
(b) Machinery A/c ...Dr. 1,76,000
To D.K. Suppliers 1,76,000
(Being an old machine of ` 85,000 sold at ` 51,000 in exchange
for a new machine costing ` 1,76,000)
Alternatively, combined entry of (a) and (b)
Machinery A/c (New Machine) ...Dr. 1,76,000
Loss on Sale of Machine A/c ...Dr. 34,000
To Machinery A/c (Old Machine) 85,000
To D.K. Suppliers (Net Invoice) 1,25,000
(Being an old machine of ` 85,000 sold at ` 51,000 in exchange
for a new machine costing ` 1,76,000)
(vi) Investment A/c ...Dr. 24,000
To Bank A/c 24,000
(Being the investment made in shares of SAIL)
(vii) Bhanu ...Dr. 27,100
To Sales A/c 26,400
To Cash A/c 700
(Being the goods sold on credit and freight to be charged from customer)
(viii) No entry can be passed. This is not a transaction.
(ix) (a) Purchases A/c ...Dr. 63,000
To M/s. Kamath Bros. 63,000
(Being 200 cases of goods @ ` 350 per case purchased less trade
discount 10%) (WN 2)
(b) M/s. Kamath Bros. ...Dr. 37,800
To Cash A/c 32,130
To Discount Received A/c 5,670
(Being 60% of invoice price of ` 63,000 paid and received 15%
cash discount)